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A BILL TO BE ENTITLED
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AN ACT
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relating to energy aggregation by political subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (d), Section 304.001, Local |
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Government Code, is amended to read as follows: |
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(d) A political subdivision corporation may negotiate on |
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behalf of its incorporating political subdivisions and the citizens |
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of member political subdivisions that create citizen aggregation |
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programs under Section 304.002 for the purchase of electricity, |
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make contracts for the purchase of electricity, purchase |
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electricity, and take any other action necessary to purchase |
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electricity for use in the public facilities or by citizens of the |
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political subdivision or subdivisions represented by the political |
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subdivision corporation. In this subsection, "electricity" means |
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electric energy, capacity, energy services, ancillary services, or |
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other electric services for retail or wholesale consumption by the |
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political subdivisions. |
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SECTION 2. Section 304.002, Local Government Code, is |
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amended by amending Subsection (a) and adding Subsections (b-1), |
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(d), (e), and (f) to read as follows: |
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(a) A political subdivision aggregator may negotiate for |
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the purchase of electricity and energy services, contract for the |
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purchase of electricity, purchase electricity, and take any other |
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action necessary to purchase electricity on behalf of the citizens |
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of the political subdivision or subdivisions. [The citizens must
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affirmatively request to be included in the aggregation services by
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the political subdivision aggregator.] |
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(b-1) The governing body of a political subdivision with a |
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population of less than 50,000 that is a member of a political |
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subdivision corporation as of September 1, 2007, may adopt an |
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ordinance or resolution providing for the automatic enrollment in |
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aggregation services of citizens of the political subdivision and |
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providing for the enrollment, upon request, of citizens of |
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unincorporated areas residing within 20 miles of the geographic |
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boundaries of the political subdivision. If the governing body of |
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the political subdivision provides for automatic enrollment of the |
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citizens in aggregation services, the political subdivision shall |
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send to each citizen by mail 60 days' written notice that citizens |
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will be automatically enrolled unless a citizen expressly requests |
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not to be enrolled. Citizens residing in unincorporated areas |
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eligible for aggregation services must affirmatively request to be |
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included in the aggregation services offered by the political |
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subdivision aggregator. |
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(d) Each retail electric provider and the transmission and |
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distribution utility shall provide to a political subdivision any |
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information the political subdivision considers necessary to |
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solicit or administer an aggregation program under this section, |
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including the name, address, electric service identifier, and |
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monthly usage of each residential customer who resides in the |
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political subdivision. The retail electric provider or the utility |
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may not require the consent of a customer as a condition of |
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providing information to a political subdivision under this |
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subsection. The political subdivision may provide to a third party |
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or an aggregator information received under this subsection, but |
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only for the purpose of bidding on, implementing, or administering |
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the aggregation program. |
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(e) This section is not intended to abrogate an electric |
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service contract between a citizen of any political subdivision and |
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a competitive retail electric provider. The initial customer base |
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for a citizen aggregation program shall only consist of individuals |
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who remained on price to beat rates as of December 31, 2006, and who |
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continue to receive service from an affiliated retail electric |
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provider on the date that an ordinance or resolution creating the |
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citizen aggregation program is passed. Citizens who receive power |
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from competitive retail electric providers as of the date the |
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ordinance or resolution passes may not join the citizen aggregation |
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program until the expiration of their contract with the competitive |
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retail electric provider. |
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(f) Any savings attributable to the aggregation program |
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shall accrue to citizen participants, except that the political |
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subdivision may recover its actual administrative costs. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |